It may seem like the economic news in Washington, D.C., and on Wall Street has little to do with your small business. However, as the economy strengthens and interest rates rise, there are very real opportunities and considerations you need to think about. Here are five steps business owners should consider now.

  1. If you foresee real estate purchases over the next year or two, you might wish to accelerate your search. Interest rates could be much higher in a year, and make the cash flow prohibitive.
  2. Look at the Small Business Administration’s 504 program for equipment and real estate purchases or refinances. This program offers exceptionally long fixed interest rates with 10 percent down.
  3. Review your current loans and be sure you understand what happens at different trigger points in the agreement. If you have an adjustable rate mortgage (arm), what happens at the next bump?
  4. If you own real estate without any debt on it now, consider taking a fixed-rate loan against it and using the cash to invest in your business or pay off other variable debt.
  5. If your line of credit is close to maxed out, consider converting some of the balance to a fixed-rate loan.
Published on: Nov 29, 2017